Chrysler 2013 Annual Report Download - page 285

284 Fiat S.p.A.
Statutory Financial
Statements
at 31 December 2013
Notes
IFRS 13 – Fair Value Measurement
The new standard clarifies rules for determination of fair value for reporting purposes and applies to all IFRSs that require or permit fair value
measurements or disclosures about fair value measurements. IFRS 13 also requires additional disclosure for fair value measurements. In
accordance with the transitional provisions, the Company adopted the new fair value measurement guidance prospectively from 1 January 2013
without providing the additional disclosures required by the standard for the comparative figures presented. Other than the additional disclosures
on fair value measurement provided in Note 28, adoption of the new standard had no material effect on the 2013 financial statements.
Amendments to IAS 1 – Presentation of Financial Statements: Presentation of Items of Other Comprehensive Income
The amendments introduce new terminology whose use is not mandatory and require that items within other comprehensive income (“OCI”)
that may be subsequently reclassified to profit and loss are grouped together. Those amendments were adopted and the presentation of items
within OCI has been modified. The presentation of comparative information was also modified accordingly.
Amendments to IFRS 7 – Financial Instruments: Disclosures – Offsetting Financial Assets and Financial Liabilities
The amendments require disclosures about the effect or potential effect of netting arrangements for financial assets and liabilities on an
entity’s financial position. The Company adopted the amendments retrospectively from 1 January 2013 and adoption had no impacts on the
disclosures or amounts recognized in the financial statements.
Amendment to IAS 1 – Presentation of Financial Statements (Annual Improvements to IFRSs – 2009-2011 Cycle)
On 17 May 2012, the IASB issued a number of amendments to IFRSs (“Annual Improvements to IFRSs – 2009-2011 Cycle”). The amendment
to IAS 1 – Presentation of Financial Statements is applicable to the Company from 2013. The amendment clarifies how comparative information
is to be presented when an entity changes accounting policies or retrospectively restates or reclassifies items in its financial statements and
when an entity provides comparative information that is additional to the information required by the standard. The amendments were applied
for the restatement of amounts presented in the statement of financial position following application of the amendments to IAS 19 with the
addition of a third statement of financial position at 1 January 2012.
New standards and interpretations not yet effective
In May 2011, the IASB issued three new standards: IFRS 10 – Consolidated Financial Statements, IFRS 11 – Joint Arrangements, and
IFRS 12 – Disclosure of Interests in Other Entities. As a consequence, the IASB also amended IAS 27 – Consolidated and Separate Financial
Statements, which was renamed IAS 27 – Separate Financial Statements. The new IAS 27 addresses accounting for subsidiaries, jointly
controlled entities and associates in the separate financial statements, including the additional disclosures required. The standard confirms that
investments in subsidiaries, joint ventures and associates are accounted for at either cost or fair value in accordance with IFRS 9. The same
accounting treatment is to be applied for each category of investment. If an entity elects to measure investments at fair value in its consolidated
financial statements, it is required to use the same method of measurement in the separate financial statements. The new standard is applicable
retrospectively for annual periods beginning on or after 1 January 2013. The European Union has completed the process for endorsement of
the standard and postponed the effective date to 1 January 2014 although early adoption is permitted from 1 January 2013. The Company will
apply the new standard from 1 January 2014 and application is not expected to have any material effect.